Security Systems News - AlarmForce Industrieshttp://securitysystemsnews.com/taxonomy/term/6685
enFired AlarmForce CEO wants $11.3 million in damageshttp://securitysystemsnews.com/article/fired-alarmforce-ceo-wants-113-million-damages
<div class="field field-name-field-subtitle field-type-text field-label-hidden clearfix">
<div class="field-items">
<div class="field-item even">Joel Matlin, forced out in July as president and CEO of the Toronto-based company he founded, has filed a lawsuit over his dismissal</div>
</div>
</div>
<div class="field field-name-field-pubdate field-type-datestamp field-label-hidden clearfix">
<div class="field-items">
<div class="field-item even" property="schema:datePublished dc:date"><span class="date-display-single" property="schema:datePublished dc:date" datatype="xsd:dateTime" content="2013-10-02T00:00:00-04:00">10/02/2013</span></div>
</div>
</div>
<div class="field field-name-field-blogger field-type-taxonomy-term-reference field-label-hidden clearfix">
<div class="field-items">
<div class="field-item even" rel="schema:author dc:creator">Tess Nacelewicz</div>
</div>
</div>
<div class="field field-name-body field-type-text-with-summary field-label-hidden clearfix">
<div class="field-items">
<div class="field-item even" property="schema:articleBody content:encoded"> <p>TORONTO—The recently ousted CEO of AlarmForce Industries is suing the company for more than $11.3 million, claiming he was wrongfully dismissed and suggesting age discrimination was a reason.</p>
<p>Joel Matlin, who founded AlarmForce 25 years ago, was abruptly fired in July after a unanimous vote by the company’s board. Matlin, 65, who previously told <em>Security Systems News</em> that <a href="http://www.securitysystemsnews.com/article/fired-alarmforce-ceo-fighting-his-ouster" target="_blank">his termination</a> as CEO and president was the result of “a mutiny created by my CFO, Anthony Pizzonia,” filed a legal claim in Ontario’s Superior Court of Justice last week.</p>
<p>Pizzonia is now interim CEO and president of AlarmForce, based here, as the company searches for a replacement for Matlin. He provided SSN with a company statement saying: “The company intends to defend itself against the lawsuit and believes the allegations are erroneous, containing factual errors and inflammatory statements.”</p>
<p>The statement added that because the matter is now in court, “the company will have no further statement to make, unless and until a decision is reached by the court, or a settlement is reached prior to court proceedings.”</p>
<p>Matlin contends in his lawsuit that he was let go because of Pizzonia’s personal ambition and the fact that Matlin is now a senior citizen.</p>
<p>The lawsuit says that Pizzonia, “lobbied the Board of Directors to terminate Joel’s employment.” It asserts that Pizzonia, who has been with AlarmForce since 1992 and on the board since 2004, “was personally motivated at least in part by his own ambition to run AlarmForce and by the fact that Joel was 65 years old.”</p>
<p>Of the more than $11.3 million total in compensation sought, only $1.3 million is for what Matlin claims was his wrongful dismissal. He also is demanding $6,640 for unpaid vacation time. However, most of the money Matlin seeks from AlarmForce in the lawsuit—$10 million—is for punitive and aggravated damages for the company’s alleged violation of the Ontario Human Rights Code.</p>
<p>Matlin doesn’t spell out in his lawsuit how he alleges AlarmForce violated the code but repeated references to his age suggest he believes age discrimination was a factor in his losing his job.</p>
<p>Matlin, in an email interview, declined to answer questions from SSN on the specifics of the lawsuit, citing the advice of his lawyers.</p>
<p>The lawsuit, filed Sept. 24, details other information surrounding the dismissal, which it contends was done with “no cause.” It notes that AlarmForce, which went public on the Toronto Stock Exchange in 1992, was <a href="http://www.securitysystemsnews.com/blog/alarmforces-results-rosy-during-ousted-ceo-s-tenure" target="_blank">very healthy</a> under Matlin, with current annual revenues of about $50 million and “market capitalization of approximately $118.6 million.” In the third quarter of this year, under Matlin’s management, gross quarterly revenues were $12.5 million, up 9.4 percent year over year. The company has no debt.</p>
<p>The filing says Matlin’s employment was based on renewable three-year terms and that he was in the middle of a renewal term due to end on Oct. 31, 2014 when he was fired July 23. His annual salary was $336,000 and was due to increase to $346,000 on Nov. 1 and then to $356,000 on Nov. 1, 2014.</p>
<p>The board fired him suddenly, about two weeks before Matlin was due to make a presentation to board members on a new company strategy. Matlin contends in the lawsuit that he was at first told he could stay for a few days and pack up. However, he claims, later that same day “he was accused of entering into unauthorized areas and forced to leave the premises without being given any time to collect any of his personal belongings.”</p>
<p>Matlin told SSN in an email communication: “I was thrown out in a very undignified fashion. In all of my years of dealing with staff I have never treated anyone in this manner so it was a shock to be treated so abusively. Anthony Pizzonia … was directly responsible for this unpleasant event.”</p>
<p>Matlin also claims in the lawsuit that the several of his family members lost their jobs “by virtue of their relationship” with him. They included his son, Adam Matlin, and his stepson, Robbie Stepak, Matlin said. In fact, he contends Pizzonia called the police in attempt to get Stepak off the premises, even though Matlin says the company’s human resource manager had given Stepak permission to be there.</p>
<p>Among other claims Matlin makes is that AlarmForce damaged his reputation in a press release announcing his termination because he says the release “implies some impropriety or blame” on his part.</p>
<p>At the time of his termination, AlarmForce issued a statement expressing gratitude to Matlin, saying: “The board and management of AlarmForce wish to thank Mr. Matlin for his dedicated years of service and numerous contributions.”</p>
<p>Matlin’s firing came a few weeks after AlarmForce’s board announced it had ended a year-long strategic review of the company in which a sale was considered. But the board said July 3 that the company wouldn’t be sold but <a href="http://www.securitysystemsnews.com/blog/management-shake-alarmforce" target="_blank">grown instead</a>.</p>
<p>Matlin also complains in his lawsuit that after he left, AlarmForce continued to run television and radio ads using his image without his permission and falsely stating he was CEO.</p>
<p>“After some time, [the company] then replaced the audio recording of Joel’s voice with another speaker, but continued to use Joel’s likeness in television commercials,’ the lawsuit contends. “At the time of this filing [of the lawsuit], the radio advertisements are still being aired.”</p>
<p>AlarmForce provides security alarm monitoring and related services to residential and commercial clients in Canada and some areas of the United States. The company also sells two-way voice alarm systems.</p>
<p>When asked his thoughts about the recent developments at the company he founded 25 years ago, Matlin told SSN: “I have always considered my staff more family than employees. I worry about their future. As for my former shareholders who have done very well during my tenure, I hope that they will continue to reap the same rewards in the years to come.”</p>
<p>Matlin previously told SSN he was planning a legal strategy, called a proxy vote, designed to replace the board members who fired him. Matlin resigned from his position on the board a week after he was fired. Reuters reported at the time of his termination that Matlin retained an 8 percent stake in the company.</p>
<p>Matlin has declined to comment further on his legal strategy.</p> </div>
</div>
</div>
<span property="dc:title" content="Fired AlarmForce CEO wants $11.3 million in damages" class="rdf-meta element-hidden"></span>Wed, 02 Oct 2013 19:13:29 +0000Tess Nacelewicz16846 at http://securitysystemsnews.comhttp://securitysystemsnews.com/article/fired-alarmforce-ceo-wants-113-million-damages#commentsFired AlarmForce CEO fighting his ousterhttp://securitysystemsnews.com/article/fired-alarmforce-ceo-fighting-his-ouster
<div class="field field-name-field-subtitle field-type-text field-label-hidden clearfix">
<div class="field-items">
<div class="field-item even">Joel Matlin, who founded the company, says he has a legal strategy to remove board members who forced him out</div>
</div>
</div>
<div class="field field-name-field-pubdate field-type-datestamp field-label-hidden clearfix">
<div class="field-items">
<div class="field-item even" property="schema:datePublished dc:date"><span class="date-display-single" property="schema:datePublished dc:date" datatype="xsd:dateTime" content="2013-08-07T00:00:00-04:00">08/07/2013</span></div>
</div>
</div>
<div class="field field-name-field-blogger field-type-taxonomy-term-reference field-label-hidden clearfix">
<div class="field-items">
<div class="field-item even" rel="schema:author dc:creator">Tess Nacelewicz</div>
</div>
</div>
<div class="field field-name-body field-type-text-with-summary field-label-hidden clearfix">
<div class="field-items">
<div class="field-item even" property="schema:articleBody content:encoded"> <p>TORONTO—The recently ousted CEO of AlarmForce Industries, one of Canada’s largest security companies, said he’s planning a legal strategy designed to replace the board members who fired him.</p>
<p>“I’m working on getting rid of the existing board,” said Joel Matlin, who also founded the company, based here, 25 years ago. He told Security Systems News that he’s working with his legal team to hold a proxy vote that he believes will result in getting a new board in place.</p>
<p>His termination as CEO and president—which came on July 23 after a unanimous vote of the company’s five-member Board of Directors—was the result of “a mutiny created by my CFO, Anthony Pizzonia,” Matlin told SSN.</p>
<p>Pizzonia, a board member who is now interim CEO for the company as it searches for a permanent replacement for Matlin, did not return requests for comments by SSN’s deadline. Pizzonia has been with AlarmForce since 1992 and on the board since 2004, according to Reuters.</p>
<p>Matlin said he had handpicked members of the board for their seats. Now, however, he said, “The issue is we have fundamental differences in the direction of the company. My direction is to grow the company, and I’m not quite sure what their direction is.”</p>
<p>The board had only cordial things to say about Matlin in a news release last week. The release was issued after Matlin resigned from the board of the publicly traded company one week after his job with the company was terminated.</p>
<p>“The board wishes to acknowledge Mr. Matlin's instrumental role in founding and developing AlarmForce into one of the leading providers of security services in Canada, and wishes to thank him for his numerous contributions to the board,” the July 31 release stated.</p>
<p>Despite his dismissal, Matlin continues to appear in the company’s television and radio commercials, according to The Gazette, a Montreal-based newspaper.</p>
<p>Matlin founded AlarmForce in 1988 and retains a stake of about 8 percent in the company. AlarmForce provides security alarm monitoring, PERS, video surveillance and related services to residential and commercial customers throughout Canada and in the United States, in Florida, Ohio, North Carolina, Georgia, Kentucky and Minnesota. AlarmForce also is a leading provider of two-way voice alarm systems in Canada.</p>
<p>Matlin said the company has about 150,000 accounts and about $4 million in RMR and that its growth has been strictly organic. “The company has shown nothing but profit over the last five years. It’s probably one of the best growing alarm companies in North America, with zero debt,” Matlin said.</p>
<p>According to The Gazette, “The company nearly doubled its net income in the quarter [that] ended Jan. 31, as it gained subscribers and reduced marketing costs.”</p>
<p>Now, Matlin told SSN, he’s working with his legal team to hold a proxy vote to replace the current board. “That means because of the amount of shares that I own, I’m allowed to petition the company to hold a shareholder meeting,” Matlin explained. “And at that meeting, shareholders will vote for either my slate [for a new board of directors] or the existing directors.” He added, “At the present time, I do have some support from major shareholders.”</p>
<p>The company will set the date of the meeting after it receives the petition, he said. “If it was up to me, the date would be tomorrow,” Matlin told SSN.</p>
<p>He said he has never been involved in a proxy battle, but added, “I’m very confident that it will be successful.”</p>
<p>Matlin was also chairman of the company and a member of the board of AlarmForce even after his termination, but he resigned from that body on July 30. He said he quit the board at the advice of his legal team as he works on his strategy. “I didn’t want to be associated with the board,” Matlin told SSN.</p>
<p>In addition to the recent shake-up at the top, AlarmForce during the past year has also been exploring a possible sale of the company as part of a strategic review begun last August.</p>
<p>Just a few weeks before Matlin’s ouster, on July 3, the company announced that its board had ended the review without a sale because it concluded the “process did not result in a transaction adequately reflecting the company's value.”</p>
<p>Instead, the company said, the plan going forward would be to focus on growing AlarmForce.</p>
<p>Matlin said he can’t discuss details of the strategic review but said he gained from it “amazing insight on how to grow the company bigger.”</p>
<p>He said he had scheduled a “vision meeting” with the board for Aug. 7. “We were going to review the vision of the company and where we were going to bring the company in the next fiscal year,” he told SSN. “And the board didn’t even have the decency to come to that meeting. They fired me in advance of that meeting. In other words they took a very ignorant approach, without even knowing what was planned.”</p>
<p>Matlin said board members on July 23 asked him for a “prevision meeting” and then showed up and abruptly terminated his job. “They thanked me for my years of service,” he said with a wry chuckle.</p>
<p>He said they did not give a reason why they were ousting him. “They also suspended my son, who was a key player on the marketing team. We ran our own in-house advertising agency,” Matlin said.</p>
<p>He said the board includes a lawyer, “an investment guy, and one is a consultant … none of them are marketing guys at all.” He added, “I think certainly now you have the financial guys running the company, certainly not the marketing guys.”</p>
<p>SSN continues to report on this story.</p> </div>
</div>
</div>
<span property="dc:title" content="Fired AlarmForce CEO fighting his ouster" class="rdf-meta element-hidden"></span>Wed, 07 Aug 2013 19:59:54 +0000Leif Kothe16675 at http://securitysystemsnews.comhttp://securitysystemsnews.com/article/fired-alarmforce-ceo-fighting-his-ouster#comments